Dubai Taxi Co. shareholders to get another Dh122.3m dividend for 2024

Dubai: Shareholders in Dubai Taxi Company are up for another Dh122.3 million dividend pay and taking the full-year 2024 total to Dh281.6 million (11.26 fils a share). A dividend totaling Dh159.3 million was paid in August last.

DTC’s dividend policy will see shareholders receive at least 85% of annual net profit, distributed semi-annually.

This comes on the back of DTC recording Dh2.19 billion in revenue (up from Dh1.95 billion in 2023) and which delivered a net profit of Dh331.3 million (down 4% from Dh345.3 million). The profit drop stemmed from the launch of the UAE corporate tax obligations and higher interest costs. (On a comparative basis, excluding tax and interest costs, net profit witnessed a robust 18% year-on-year increase.)

There were 49 million trips completed using the DTC taxi and limousine fleets during the whole of last year, which is 6% higher year-on-year.

Gunning for ‘double-digit’ growth
A ‘bold’ new 5-year corporate strategy has also been brought out and which will position DTC as the ‘preferred mobility choice for everyone.’
“The strategy will drive double-digit growth across our portfolio, supported by additional investments in electric and hybrid vehicles, as we continue to reduce the (transport) industry’s environmental impact and promote eco-friendly solutions,” said Abdul Muhsen Ibrahim Kalbat, Chairman.

On DFM, the stock’s trading at Dh2.75.

Some of the results from offering more EV options are already visible for DTC. Its partnership with the ride-hailing platform Bolt brought in one million limousine trips between the launch in December and mid-January. “This partnership not only strengthens our position in the e-hailing sector but also supports Dubai’s vision to transition 80% of taxi trips to e-booking in the coming years,” said Mansoor Rahma Alfalasi, the DTC’s CEO. (The alliance with Bolt is an exclusive arrangement for the local market. Bolt operates its platform in more than 600 cities and 50 countries.)
More people, more rides
In 2024, Dubai recorded its highest increase in population since 2018, with the population increasing by over 169,000 to reach 3.83 million. Plus, there is the organic growth in the city’s tourism numbers.

“DTC is positioned to capture value from the emirate’s robust growth while its investments in technology and partnerships will continue to unlock exciting new growth opportunities,” said a statement on what the future holds.